DuPont Decomposition
Why does GUJAPOLLO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.3% = 3.5% × 0.07 × 1.13
Latest: FY2025
Profitability
Net Margin
3.5%
14.7% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.10x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.09x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.3 pp over 4 years. Driven by net margin declining (14.7% → 3.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.7% | 0.10 | 1.09 | 1.6% |
| FY2023 | ₹0Cr | ₹0Cr | 17.4% | 0.14 | 1.08 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 19.9% | 0.11 | 1.08 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 0.07 | 1.13 | 0.3% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.